Judge says GM can bid on Delphi

NEW YORK, July 13 (UPI) -- General Motors Corp., fresh out of bankruptcy, can proceed with a deal to help U.S. parts supplier Delphi out of its own bankruptcy process, a judge said.

U.S. Bankruptcy Judge Robert Gerber, presiding over the GM bankruptcy case, said Monday the automaker can join with Parnassus Holdings LLC for a deal in which GM will invest $2 billion in Delphi and provide the company a $500 million loan. Platinum Equity LLC, the parent company of Parnassus, will invest $250 million and loan $250 million to the parts supplier, which has been in bankruptcy since 2005, The Detroit News reported.

U.S. Bankruptcy Judge Robert Drain, presiding over the Delphi case, scheduled a hearing for July 23 to review the GM bid, the only one submitted before the deadline on bids expired Friday.

The plan calls for GM to assume obligations for Delphi's hourly workers' pension plan, but not the pension plan for salaried workers, which will be turned over to the government.

On Friday, GM sold the bulk of its viable assets to the U.S. and Canadian governments and the United Auto Workers union.